Analyzing RealReal (NASDAQ:REAL) & Ryohin Keikaku (OTCMKTS:RYKKY)

Ryohin Keikaku (OTCMKTS:RYKKY) and RealReal (NASDAQ:REAL) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Earnings & Valuation

This table compares Ryohin Keikaku and RealReal”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ryohin Keikaku	$5.90 billion	2.81	$488.18 million	$0.47	31.38
RealReal	$749.91 million	1.76	-$41.80 million	($1.12)	-9.68

Ryohin Keikaku has higher revenue and earnings than RealReal. RealReal is trading at a lower price-to-earnings ratio than Ryohin Keikaku, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ryohin Keikaku and RealReal’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ryohin Keikaku	8.32%	20.71%	12.61%
RealReal	-10.82%	N/A	-17.99%

Institutional & Insider Ownership

64.7% of RealReal shares are held by institutional investors. 2.7% of RealReal shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Ryohin Keikaku has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, RealReal has a beta of 2.81, indicating that its stock price is 181% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Ryohin Keikaku and RealReal, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryohin Keikaku	0	1	0	0	2.00
RealReal	1	2	6	0	2.56

RealReal has a consensus target price of $17.50, suggesting a potential upside of 61.44%. Given RealReal’s stronger consensus rating and higher probable upside, analysts clearly believe RealReal is more favorable than Ryohin Keikaku.

Summary

Ryohin Keikaku beats RealReal on 8 of the 14 factors compared between the two stocks.

About Ryohin Keikaku

Ryohin Keikaku Co., Ltd. develops, manufactures, distributes, and sells apparel, household goods, and food items in Japan and internationally. It offers apparel products, comprising shirts, denim jeans, socks, sneakers, innerwear, sweaters, camisoles, cardigans, windbreakers, duffle coats, skirts, trousers, pajamas for adults and kids, maternity stoles, backpacks, handbags, case trolleys, hats, mufflers, gloves, stockings, umbrellas, slippers, sandals, and Japanese working clothes; household goods products, including towels, mattresses, toning water, skin care products, make-up tools, fragrance oils, aroma diffusers, air purifiers, stationary, storage boxes and cases, kitchenware, cutleries, refrigerators, toasters, kettles, juicers, mixers, coffee makers, rice cookers, cabinets, shelves, chairs, benches, sofas, beds, duvets, blankets, refillable bottles, baskets, buckets, cleaning tools, laundry supplies, emergency kits, reusable masks, clocks, flashlights, radios, speakers, extension cords, travel adapters, toys, and bicycles and tricycles; and food products, including retort pouch foods, baumkuchen banana, frying-pan-ready meal kits, butter chicken curry, cookies, crackers, canned foods, potato chips, seasonings, jams, soups, frozen foods, doughnuts, ice cream, coffee beans, sake, sparkling water, and apple juice, as well as houses. The company designs, manufactures, and sells home furnishings, such as furniture, accessories, antiques, curtains, and rugs; engages in the production, consulting, and design of residential and commercial spaces; and develops and manages green/environmental businesses. In addition, it operates MUJI to GO shops that offer travel, commuting, business, study, and play products; Found MUJI; MUJI 500; Café&Meal; IDÉE stores; MUJI Campsite, which operates campgrounds; MUJI HOUSE; and muji.com, an online store. Ryohin Keikaku Co., Ltd. was incorporated in 1979 and is based in Tokyo, Japan.

About RealReal

The RealReal, Inc. operates an online marketplace for resale luxury goods in the United State. The company offers various product categories, including women's fashion, men's fashion, jewelry, and watches. It primarily sells products through online marketplace and retail stores. The company was incorporated in 2011 and is headquartered in San Francisco, California.